Index slumps for third straight day
By Feng Jianmin |
November 19, 2011, Saturday
|
Print Edition
Print Edition
SHANGHAI'S stock market yesterday fell for the third day, capping the largest weekly loss in a month, after data showed that home prices in more Chinese cities declined in October from the previous month.
The benchmark Shanghai Composite Index lost 1.9 percent to 2,416.56 points, the lowest since October 25. The index lost 2.6 percent this week, the largest weekly drop since the week ending on October 21, after the International Monetary Fund warned China of accumulating risks within the financial system and after yields of Spanish and Italian government bonds surged.
"The market rally since late October was a result of speculation over easier monetary policies, such as a reduction in the reserve requirements, but the central bank did not indicate such possibilities in its third-quarter report," said Kou Wenhong, a fund manager at China Nature Asset Management Co. "The outlook for slower economic growth in China and uncertainties in Europe are also weighing down the market."
Property developers led the decliners after data showed that a total of 34 cities had seen a drop in home prices in October, 17 more than in September, China's top statistics bureau said yesterday. Home prices in another 20 cities were unchanged in October from September, it added.
Poly Real Estate Group, China's second-largest listed developer, lost 3 percent to close at 9.08 yuan (US$1.43). Gemdale Corp dropped 2.2 percent to 4.50 yuan.
Gold miners trailed after bullion prices dropped more than 3 percent in New York on Thursday. Shandong Gold Mining Co went down 3.5 percent to 37.71 yuan. Zijin Mining Group shed 2.6 percent to 4.45 yuan.
Banks were weak. The Bank of China, the nation's third-largest lender by assets, lost 1 percent to 2.93 yuan.
The benchmark Shanghai Composite Index lost 1.9 percent to 2,416.56 points, the lowest since October 25. The index lost 2.6 percent this week, the largest weekly drop since the week ending on October 21, after the International Monetary Fund warned China of accumulating risks within the financial system and after yields of Spanish and Italian government bonds surged.
"The market rally since late October was a result of speculation over easier monetary policies, such as a reduction in the reserve requirements, but the central bank did not indicate such possibilities in its third-quarter report," said Kou Wenhong, a fund manager at China Nature Asset Management Co. "The outlook for slower economic growth in China and uncertainties in Europe are also weighing down the market."
Property developers led the decliners after data showed that a total of 34 cities had seen a drop in home prices in October, 17 more than in September, China's top statistics bureau said yesterday. Home prices in another 20 cities were unchanged in October from September, it added.
Poly Real Estate Group, China's second-largest listed developer, lost 3 percent to close at 9.08 yuan (US$1.43). Gemdale Corp dropped 2.2 percent to 4.50 yuan.
Gold miners trailed after bullion prices dropped more than 3 percent in New York on Thursday. Shandong Gold Mining Co went down 3.5 percent to 37.71 yuan. Zijin Mining Group shed 2.6 percent to 4.45 yuan.
Banks were weak. The Bank of China, the nation's third-largest lender by assets, lost 1 percent to 2.93 yuan.
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